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Free E3 Exam Braindumps
E3 Strategic Management Questions 9–16 (page: 3)

Updated On: 4-Aug-2026
Page 3 of 36
PDF with 278 Questions

Which of the following did Johnson, Scholes and Whittington identify as success criteria for the evaluation of strategic options?
Select ALL that apply.

  1. Suitability
  2. Affordability
  3. Feasibility
  4. Acceptability
  5. Durability

Answer(s): A,C,D



EF manufactures and sells cars in Country X.
Which of the following would improve its profitability?

  1. Withdrawal of one of EF's major competitors from selling cars to motorists in Country X.
  2. Introduction of legislation in Country X requiring improvements to the pay and conditions of the workers in car factories. 
  3. Adoption of free trade principles by the government of Country X, resulting in the removal of tariffs on imported cars.
  4. An increase in the sales tax levied by the government of Country X on the sale of new cars.

Answer(s): A



Organizations have a variety of stakeholders, each with differing interests and requirements. This can lead to stakeholder conflict. This can be further complicated when individuals are members of more than one stakeholder group and when members of one group do not share the same principal interest.
Company FF has decided that it needs to undertake a stakeholder analysis in order to manage its stakeholders more effectively.
Which of the following statements are valid when undertaking stakeholder analysis?
Select ALL that apply.

  1. Establishes stakeholder interests and claims on the Organization.
  2. The analysis enables priorities to be set to minimize power clashes.
  3. Considers how to prevent stakeholder trouble before it starts.
  4. Determines the degree of power that each group holds.
  5. The analysis only focuses on quantitative matters.

Answer(s): A,B,D



Which THREE principles are explicitly named in the CIMA Ethical Code for Management Accountants Part A?

  1. Objectivity
  2. Professional Competence and Due Care
  3. Integrity
  4. Privacy of Information
  5. Correct Personal Behavior

Answer(s): A,B,C



D is a Project Manager. D has just left a meeting with the Executive Team of his Organization. D is delighted that the Executive Team has given support to D's proposal to implement a knowledge management system in the Organization.
What should be the next activity that D undertakes in this project?

  1. Create a technological infrastructure of hardware and software.
  2. Create database structures to store and reference knowledge.
  3. Gain the commitment of senior management to the project.
  4. Populate the knowledge management system with knowledge.

Answer(s): A



Company MM is wanting to build an out of town shopping complex. This will be located near a busy road which is surrounded by housing estates. MM has yet to obtain planning permission. It recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity Manager you have been asked to take over responsibility for Stakeholder Management.
Which of the following Stakeholder Management statements is NOT correct?

  1. Organizations will have a variety of stakeholders each with differing attitudes to risk which can cause conflict.
  2. Pressure groups have an interest in matters of public policy, but do not want to control the workings of government.
  3. Stakeholder management is made more complicated for an Organization when individuals belong to more than one stakeholder group.
  4. In measuring the satisfaction of stakeholder interests, Organizations should only focus on quantitative matters.

Answer(s): D



According to Johnson, Scholes and Whittington, Suitability is an important consideration when evaluating potential alternative investment strategies.
Which of the following is a Suitability consideration?

  1. There are limited raw materials available.
  2. Finances are available.
  3. Current markets are not saturated.
  4. Staff will be resistant to change.

Answer(s): C



Which of the following is NOT a use of the Value Chain?

  1. Give managers a deeper understanding of precisely what their Organization does.
  2. Implement changes to protect key processes.
  3. Identify the key processes within the business that add value to the end customer.
  4. Identify the non-value added processes.

Answer(s): B



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